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• Operating Income: CNY146.6 billion, down 10.9% year-on-year.

• Net Profit: CNY44.5 billion, down 4.2% year-on-year.

• Cost-to-Income Ratio: 27.6%, an improvement of 0.24%.

• Total Assets: Increased by 3.3%.

• Corporate Loan Balance: Increased by 12.4%.

• Personal Loans: Decreased by close to 11%.

• Mortgage-Based Loans Proportion: Increased by 4%, reaching 62.8%.

• Non-Performing Loan (NPL) Ratio: 1.06%.

• Provision Coverage Ratio: 251%.

• Core Tier 1 Capital Ratio: 9.12%, down by 0.1% compared to the beginning of the year.

• Dividend Payout: Total dividends paid out in 2024 were RMB80.7 billion, a RMB30.2 billion increase from 2023.

• Corporate Clients: Number reached 850,000, increased by 30% year-on-year.

• Warning! GuruFocus has detected 5 Warning Signs with SZSE:000001.

Release Date: March 17, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ping An Bank Co Ltd (SZSE:000001) achieved a total operating income of CNY146.6 billion in 2024, despite a challenging environment.

• The bank's corporate loan balance increased by 12.4%, demonstrating strong growth in this segment.

• Ping An Bank Co Ltd (SZSE:000001) maintained a strong provision coverage ratio of 251%, indicating robust risk management capabilities.

• The bank's cost-to-income ratio improved to 27.6%, reflecting enhanced operational efficiency.

• Ping An Bank Co Ltd (SZSE:000001) has made significant progress in fintech, green finance, and inclusive finance, aligning with national strategic initiatives.

Negative Points

• The bank's net profit decreased by 4.2% year-on-year, reflecting financial pressures.

• Ping An Bank Co Ltd (SZSE:000001) experienced a 10.9% decline in operating income, indicating revenue challenges.

• The net interest margin (NIM) faced compression, with a significant drop in Q4 2024.

• Personal loans decreased by close to 11% due to proactive reduction of high-risk businesses.

• The bank's core Tier 1 capital ratio decreased by 0.1%, indicating pressure on capital adequacy.

Q & A Highlights

Q: How will the recent adjustments affect the positioning and strategy of Ping An Bank's retail business, and what impact will the leadership changes have? A: Guangheng Ji, Head of the Bank, Executive Director, explained that the retail strategy has been streamlined to address high-risk products and improve risk management. The leadership change aims to bring younger leaders with fresh perspectives to drive the retail strategy forward. The focus remains on maintaining strategic composure and adapting to challenging external environments.